Legal Question in Business Law in Illinois

Re: Acquiring a Business

Certainly, it might, however, be a complicated separation, depending on the nature of you busiesses.

Re: Acquiring a Business

If the target company is also small and closely held, you can come close to un-doing the acquisition. The problem is that after a year of commingled operations and finances, the deal could be incredibly difficult to unwind, especially as to outside creditors of each company, which might have claims agains the other.

Another problem is that the stock you give to the shareholder(s) of the target company could become widely held within a year, e.g. when a shareholder dies and his estate is divided among many heirs.

I strongly suggest having a business attorney go over what you're hoping to accomplish, and what downside risks you see, and finding a way to adjust the purchase price after-the-fact rather than trying to unring the bell.

Re: Acquiring a Business

Sure, there are many ways to do this. You can issue stock and retain an option to purchase it back. However, your option would expire if certain performance goals are met.

To really spell this out, any attorney will need to know a great deal more about each business.

Good luck,

Ben

Re: Acquiring a Business

Yes...I can draft the contract for you. Please take a look at my site at www.lawyers.com/amyghosh

Amy Ghosh

Attorney at Law